Tax Update December 2019
The Directorate General of Tax recently issued a Publication for the draft Omnibus Tax Law to strengthen the Indonesian economy. The background of Omnibus Tax Law is due to the global economic slowdown, potential Indonesian economic stagnation, and the unoptimized Indonesia’s Investment Competitive Index.
In the draft Omnibus Tax Law, there are several tax facilities, e.g. reduction of Corporate Income Tax rate, territorial system for the individual taxpayer, relaxation on the claimable Input VAT, tax holiday, etc.